CBRE Global Investors buys prime Seattle office assets

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CBRE Global Investors has bought two prime Seattle office assets for a fund it manages.

The investment manager said the properties are in an area of Seattle experiencing “tremendous growth”.

Media reports said CBRE Global Investors paid owner Brookfield $273m (€253m) for the assets, making the deal the biggest in Seattle this year.

The South Lake Union submarket is attracting creative and technology sectors, CBRE Global Investors said.

CBRE Global Investors said it will make capital improvements to enhance the appeal of the property, aiming to attract both traditional and technology users.

A high concentration of technology and healthcare users has spurred office, retail, residential and hotel development adjacent to the property.

The two Metropolitan Park properties, which are 93.6% leased, are multi-let and total 708,283sqft.

“The South Lake Union submarket has experienced tremendous growth as a result of the influx of technology and biotechnology tenants,” said Vance Maddocks, chief executive of CBRE Global Investors.

“Since 2010, the submarket has posted 1m sqft of net absorption, and vacancy has decreased from 14.7% to 8%.

“Metropolitan Park has already proven its ability to attract a broad range of traditional and creative/tech tenants.”

Late last year, the real estate subsidiary of the Caisse de dépôt et placement du Québec, Ivanhoé Cambridge and Callahan Capital Properties, bought two office properties for $280m in Seattle.

Adam Adamakakis, executive vice president of US investments at Ivanhoé Cambridge, said the investor owns 13% of Seattle’s class-A, central business district office market.